FAIRFAX, Va.--(BUSINESS WIRE)--Please replace the release dated October 23, 2017 with the following corrected version due to multiple revisions. The following reflects the increase in shares outstanding due to the previously announced five percent stock dividend that was paid on July 7, 2017 and related changes in the per share and shares outstanding figures included in the press release. The following also corrects the percentage increases in net income stated in the first and third sentences from 9% to 10% and from 40.1% to 40.9%, respectively, and corrects certain erroneous references to June 30 in the balance sheet to September 30.
The corrected release reads:
FREEDOM BANK EARNS RECORD NET INCOME FOR THIRD QUARTER AND FIRST NINE MONTHS
Bank Increases Core Deposits to Fund Continuing Growth
The Freedom Bank of Virginia (OTCQX:FDVA) earned net income of $791,715 for the third quarter ending September 30, 2017, up 10% from $719,205 for the same period in 2016. For the nine months ending September 30, 2017, net income was $2,515,851. This was up $730,771 (40.9%) from the prior year. Earnings per share were $0.12 for third quarter, compared to $0.11 for the third quarter of 2016 as restated for the five percent stock dividend that was paid on July 7, 2017. Earnings per share through the third quarter of 2017 were $0.39 per share, up from $0.28 per share in 2016 as restated for the stock dividend.
Total assets increased $67,102,774 (13.6%) to $561,130,267 at September 30, 2017 compared to September 30, 2016. The highest yielding asset of loans receivable grew $1,743,286 to $398,562,312 at September 30, 2017 from a year earlier. Loans held for sale were $11,528,559 compared to $13,825,894 the prior year. Investment securities held for sale were $52,772,671, up from $46,196,986 in 2016. Additionally, the bank had $14,911,233 in municipal bonds held to maturity in 2017 that it did not have the prior year.
Asset quality remains strong with non-performing assets comprising 0.30% of total assets at September 30, 2017, versus 0.22% of total assets at September 30, 2016. Past due loan balances still accruing interest were $1,512,627 at September 30, 2017. Both of these metrics are superior to community banks nationally.
Freedom generated core deposit growth in the third quarter. The bank will use these deposits to fund loans and investments, which should have a positive effect on profitability. Non-interest checking balances were $73,483,463 at September 30, 2017, up 11.2% from $66,056,888 a year earlier. Interest bearing checking account balances were $179,943,810, a $74,887,370 (71.3%) increase from $105,056,440 the prior year. Certificates of deposits were $238,411,457, down from $241,037,751 a year earlier, as transaction accounts funded more of the growth of the bank. Total deposits were $493,902,789 at September 30, 2017, versus $414,299,769 the prior year. Transaction account balances of $253,427,273 exceeded time and savings deposit balances of $240,475,516 for the first time in the past five years as a result of the bank’s emphasis on core deposit growth.
CEO Craig Underhill stated, “The bank focused on sustainable growth in 2017 by improving our infrastructure, growing core deposits and improving our loan mix. Short- term borrowings were repaid to the FHLB Atlanta and a large portion of brokered certificate of deposits were redeemed and replaced with transaction account balances and public deposits from local municipalities. We expect to open our fourth branch office at 4500 Daly Drive, Suite 240, Chantilly, Virginia 20151 in the fourth quarter to help continue growing core deposits and to serve new and existing customers in this area. Freedom Bank also reduced its CRE loan concentration in 2017 to provide a more diversified loan portfolio. These actions slowed loan growth for 2017 versus the prior year but positioned the bank for sustainable growth going forward.”
Capital increased to $54,700,983 at September 30, 2017, a $3,542,012 increase over the $51,158,971 level at September 30, 2016. Tangible book value per share was $8.38 at September 30, 2017, an increase from $7.90 per share at September 30, 2016 as restated for the stock dividend.
Freedom Bank is a community-oriented, locally-owned bank with locations in Fairfax, Reston and Vienna, Virginia, and coming soon our newest location in Chantilly, Virginia. For information about Freedom Bank’s deposit and loan services, visit the Bank’s website at www.freedombankva.com.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key personnel. Other risks that can affect the Bank are detailed from time to time in our quarterly and annual reports filed with the Federal Financial Institutions Examination Council. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.
| The Freedom Bank of Virginia | ||||||||
| Statements of Financial Condition | ||||||||
| September 30, 2017 | September 30, 2016 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 1,487,632 | $ | 1,176,028 | ||||
| Federal funds sold | 69,119,000 | 24,107,000 | ||||||
| Interest Bearing Balances with Banks | 6,080,661 | 4,760,857 | ||||||
| Investment securities available for sale, at fair value | 52,722,671 | 46,196,986 | ||||||
| Investment securities held to maturity | 14,911,233 | - | ||||||
| FHLB and Federal Reserve Bank stock | 2,411,550 | 2,995,900 | ||||||
| Loans held for sale | 11,528,559 | 13,825,894 | ||||||
| Loans receivable | 398,562,312 | 396,819,026 | ||||||
| Allowance for possible loan losses | (4,562,370 | ) | (4,100,459 | ) | ||||
| Net Loans | 393,999,942 | 392,718,567 | ||||||
| Premises and equipment, net | 1,383,953 | 713,768 | ||||||
| Accrued interest and other receivables | 1,392,669 | 1,028,948 | ||||||
| Deferred Tax Asset | 2,125,500 | 1,604,000 | ||||||
| Other assets | 1,643,945 | 2,632,761 | ||||||
| Bank Owned Life Insurance | 2,322,952 | 2,266,784 | ||||||
| Total Assets | $ | 561,130,267 | $ | 494,027,493 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Demand deposits: | ||||||||
| Non-interest bearing deposits | $ | 73,483,463 | $ | 66,056,888 | ||||
| Interest Checking | 179,943,810 | 105,056,440 | ||||||
| Savings deposits | 2,064,059 | 2,148,690 | ||||||
| Time deposits | 238,411,457 | 241,037,751 | ||||||
| Total Deposits | 493,902,789 | 414,299,769 | ||||||
| Fed Funds Purchased and FHLB advances | 10,428,571 | 26,714,286 | ||||||
| Other accrued expenses | 1,950,442 | 1,685,112 | ||||||
| Accrued interest payable | 147,482 | 169,355 | ||||||
| Total Liabilities | 506,429,284 | 442,868,522 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock of $0.01 par value with 25,000,000 shares authorized, | ||||||||
| Voting Common Stock | 58,668 | 55,377 | ||||||
| 5,866,765 and 5,537,747 shares issued and outstanding | ||||||||
| September 30, 2017 and September 30, 2016 | ||||||||
| Non-Voting Common Stock | 6,601 | 6,287 | ||||||
| 660,143 and 628,707 shares issued and outstanding | ||||||||
| September 30, 2017 and September 30, 2016 | ||||||||
| Additional paid-in capital | 52,311,337 | 47,774,866 | ||||||
| Accumulated other comprehensive income | (387,271 | ) | 94,876 | |||||
| Retained earnings | 2,711,648 | 3,227,565 | ||||||
| Total Stockholders' Equity | 54,700,983 | 51,158,971 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 561,130,267 | $ | 494,027,493 | ||||
|
The Notes to Financial Statements are an integral part of these statements. |
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| The Freedom Bank of Virginia | ||||||||||||
| Statements of Operations | ||||||||||||
| For the three months ended | For the nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||
| Interest Income | ||||||||||||
| Interest and fees on loans | $ | 5,286,184 | $ | 5,127,745 | $ | 15,814,952 | $ | 13,984,388 | ||||
| Interest on investment securities | 603,727 | 288,447 | 1,390,015 | 908,254 | ||||||||
| Interest on Federal funds sold | 6,388 | 362 | 12,565 | 8,084 | ||||||||
| Total Interest Income | 5,896,299 | 5,416,554 | 17,217,532 | 14,900,726 | ||||||||
| Interest Expense | ||||||||||||
| Interest on deposits | 1,336,841 | 942,623 | 3,485,109 | 2,624,278 | ||||||||
| Interest on borrowed funds | 47,076 | 32,130 | 125,709 | 81,450 | ||||||||
| Total Interest Expense | 1,383,917 | 974,753 | 3,610,818 | 2,705,728 | ||||||||
| Net Interest Income | 4,512,382 | 4,441,801 | 13,606,714 | 12,194,998 | ||||||||
| Provision for Possible Loan Losses | - | 515,500 | 30,000 | 925,500 | ||||||||
| Net Interest Income after | ||||||||||||
| Provision for Possible Loan Losses | 4,512,382 | 3,926,301 | 13,576,714 | 11,269,498 | ||||||||
| Other Income | ||||||||||||
| Gain on sale of mortgage loans | 1,231,444 | 1,648,245 | 3,376,345 | 3,823,619 | ||||||||
| Service charges and other income | 56,501 | 35,188 | 193,044 | 157,372 | ||||||||
| Increase in cash surrender value of bank-owned life insurance | 13,894 | 14,829 | 42,569 | 45,089 | ||||||||
| Total Other Income | 1,301,839 | 1,698,262 | 3,611,958 | 4,026,080 | ||||||||
| Operating Expenses | ||||||||||||
| Officers and employee compensation and benefits | 2,869,891 | 2,969,295 | 8,507,074 | 8,156,757 | ||||||||
| Occupancy expense | 264,713 | 250,340 | 754,793 | 730,523 | ||||||||
| Equipment and depreciation expense | 144,742 | 150,177 | 432,083 | 403,804 | ||||||||
| Insurance expense | 73,932 | 78,579 | 290,335 | 236,644 | ||||||||
| Professional fees | 397,895 | 227,682 | 1,055,925 | 693,501 | ||||||||
| Data and item processing | 256,270 | 221,129 | 670,757 | 690,145 | ||||||||
| Business development | 61,092 | 36,128 | 169,001 | 150,809 | ||||||||
| Franchise tax | 131,156 | 107,070 | 361,353 | 278,718 | ||||||||
| Mortgage fees and settlements | 203,356 | 314,588 | 530,087 | 745,333 | ||||||||
| Other operating expenses | 211,559 | 181,270 | 605,413 | 504,864 | ||||||||
| Total Operating Expenses | 4,614,606 | 4,536,258 | 13,376,821 | 12,591,098 | ||||||||
| Income before Income Taxes | 1,199,615 | 1,088,305 | 3,811,851 | 2,704,480 | ||||||||
| Provision for Income Taxes | 407,900 | 369,100 | 1,296,000 | 919,400 | ||||||||
| Net Income | $ | 791,715 | $ | 719,205 | $ | 2,515,851 | $ | 1,785,080 | ||||
| The Notes to Financial Statements are an integral part of these statements. | ||||||||||||
